Match Each Ratio That Follows to Its Use (Items A-H)

question 137

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-dividends per share

• A)assess the profitability of the assets
• B)assess how effectively assets are used
• C)indicate the ability to pay current liabilities
• D)indicate how much of the company is financed by debt and equity
• E)indicate instant debt-paying ability
• F)assess the profitability of the investment by common stockholders
• G)indicate future earnings prospects
• H)indicate the extent to which earnings are being distributed to common stockholders

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Definitions:

Environmental Scanners

Individuals or tools that continuously monitor an organization’s external and internal environment to detect early signs of opportunities and threats that may influence strategic planning.

Critical Events

Significant occurrences that have a profound impact on an organization, requiring immediate attention and action.

Competitive Intelligence

The gathering and analysis of information about competitors' activities and strategies to inform business decision-making.

Formal Approach

A structured method or procedure in management and organization, characterized by established rules and regulations.